Page:United States Statutes at Large Volume 108 Part 5.djvu/711

 PUBLIC LAW 103-403—OCT. 22, 1994 108 STAT. 4201 (b)(2) may impose a one-time loan processing fee, not to exceed 0.5 percent of the principal amount of the loan. "(4) NEW DEBENTURES. — Issuers of debentures under title III may issue new debentures in accordance with such title in order to prepay existing debentures as authorized in this section. " (5) PRELIMINARY NOTICE.— "(A) IN GENERAL.—The Administration shall use certified mail and other reasonable means to notify each eligible borrower of the prepayment program provided in? this title. Each preliminary notice shall specify the range and dollar amount of repurchase premiums which could be required of that borrower in order to participate in the program. In carrying out this program, the Administration shall provide a period of not less than 45 days following the receipt of such notice by the borrower during which the borrower must notify the Administration of the borrower's intent to participate in the program. The Administration shall require tnat a borrower who gives notice of its intent to participate to make an earnest money deposit of $1,000 which shall not be refundable but which shall be credited toward the final repurchase premium. "(B) DEFINITION. —For purposes of this paragraph, the term 'borrower', in the case of a small business investment company or a speciaUzed small business investment company, means 'issuer'. "(6) FINAL NOTICE. —Based upon the response to the preliminary notice under paragraph (5), the Administration shall make a final computation of the necessary prepa5anent premiums and shall notify each qualified respondent of the results of such computation. Each qualified respondent shall be afforded not less than 4 months to complete the prepayment. "(e) DEFINITIONS. —For purposes of this section— "(1) the term 'issuer' means— "(A) the qualified State or local development company that issued a debenture pursuant to section 503, which has been purchased by the Federal Financing Bank; and "(B) a small business investment company licensed pursuant to subsection (c) or (d) of section 301; or "(2) the term 'borrower' means a small business concern whose loan secures a debenture issued piu"suant to section 503. "(f) REGULATIONS.—Not later than 30 days afl;er the date of enactment of this section, the Administration shall promulgate such regulations as may be necessary to carry out this section. "(g) AUTHORIZATION.—T here are authorized to be appropriated $30,000,000 to carry out the provisions of The Small Business Prepayment Penalty Relief Act of 1994.". TITLE VI—MISCELLANEOUS AMENDMENTS SEC. 601. SBA INTEREST PAYMENTS TO TREASURY. Section 4(c)(5)(B)(ii) of the Small Business Act (15 U.S.C. 633(c)(5)(B)(ii)) is amended to read as follows:

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